Forex Analysis: Staying Short AUDUSD, Long USDJPY
I'm now long the US Dollar (ticker: USDOLLAR) against the Japanese Yen and Australian Dollar, and I believe that the USD stands to strengthen further in the week ahead.
For the AUDUSD, I'm short from $1.0380 with a stop above key congestion highs at $1.0450. First targets are the $1.0300 mark, but I'll likely trail my stop instead of taking full profits on said position.
The position nearly got stopped out in the overnight AUDUSD bounce, but I'm encouraged by the fact that the AUDUSD has yet to break highs.
The USDJPY long position will remain in force as long as we stay above September lows on a weekly closing basis.
--- Written by David Rodriguez, Quantitative Strategist for DailyFX.com To receive the Speculative Sentiment Index and other reports from this author via e-mail, sign up to David’s e-mail distribution list via this link.
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